Target ad points to new $300 Xbox 360 Elite price

Microsoft could be about to reduce the price of the Xbox 360 in the US, bringing the price of its Elite system in line with the new price of the PlayStation 3.

According to a Target advert, published by Engadget, the price of the 120GB Xbox 360 Elite is set to fall to USD 299.99 from USD 399.99, while the 60GB console will be reduced to USD 249.99 from USD 299.99.

The advert is scheduled to appear on August 30 suggesting that, if the new price points have come from Microsoft, an announcement will be made later this week.

Analysts have been expecting Microsoft would be forced to follow Sony's price cut since the new PlayStation 3 price was unveiled at last week's Gamescom.

"The USD 299 price point will likely become the new standard for the next generation consoles for the next year," Jesse Divnich, director of analyst services at EEDAR, recently predicted.

Other analysts have suggested reductions are likely to appear this summer, to coincide with the September release of Halo ODST.

A discontinuation of the 60GB console has also been rumoured, which would allow Microsoft to concentrate its efforts on just two SKUs - the Arcade and Elite bundles.

However, while the likelihood of a price reduction in the US seems increasingly likely, there's no guarantee the move will be mirrored in the UK. Earlier this month, UK retailers said they were gearing up for a price increase on the Xbox 360 Arcade pack, from GBP 129.99 to GBP 159.99. This was being done to counteract the poor pound-to-Euro currency exchange rate, said one independent retail source.